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International Journal of Trend in Scientific

Research and Development (IJTSRD)


International Open Access Journal
ISSN No: 2456 - 6470 | www.ijtsrd.com | Volume - 1 | Issue – 6

The Effect of Strategic Intelligence on Business Success in


Selected Commercial Banks in South-East, Nigeria

Ndubuisi-Okolo Purity.U.
Department of Business Administration And Department of
Co-Operative Economy, Faculty of Management Sciences,
Nnamdi Azikiwe University, Awka, Anambra State, Nigeria

Anekwe Rita Ifeoma. Theresa Anigbogu


Department of Business Administration And Ph.D, Department of Business Administration And
Department of Co-Operative Economy, Faculty of Department of Co-Operative Economy, Faculty of
Management Sciences, Nnamdi Azikiwe University, Management Sciences, Nnamdi Azikiwe University,
Awka, Anambra State, Nigeria Awka, Anambra State, Nigeria

ABSTRACT Delen,(2011).It has its origin in Management


Information Systems of the 1970s. Executive
This study concentrated on the influence of strategic
intelligence on business success. High rate of
competition in today’s banking industry constitutes a Information Systems then emerged in the 1980s and
major challenge to growth and development. A survey was automatically transformed into competitive
research design was adopted. The justification for the intelligence. However, the development of CI was
adoption of survey research design is that the study propelled by global competition; the emphasis on
made use of primary data which involves elicitation of quality management and the realization by banks that
responses via questionnaire from the respondents Data actionable intelligence is a key towards competitive
generated were analyzed utilizing Pearson Product advantage. It also evolved from economics,
Moment Correlation Coefficient. The result revealed marketing, military theory, information science and
that there is a significant positive relationship between strategic management (Juhari and Stephens, 2006).
strategic intelligence and business success. This
depicts that effective strategic intelligence by firms The adoption of CI within organizations has
leads to business success. In conclusion, Banks should significantly contributed towards the sharing of ideas,
also be flexible enough to adapt to the changes addressing competitive dynamics, identifying new
accruing from the external business environment. opportunities and avoiding threats. Competitive
Intelligence is perceived as a panacea to the
Keywords: Strategic intelligence, competitive contemporary needs of organizations for strategic
intelligence, business success and performance decision-making with intensive use of Modern
. Information Technology. Vitt, Luckevich and Misner
1.1 INTRODUCTION (2002) state that competitive Intelligence covers
myriad of technologies, software platforms, specific
Competitive Intelligence is considered as a part of applications and processes. It is a multifaceted term
Decision Support Systems (Turban, Sharda and that refers to processes, techniques or tools that

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International Journal of Trend in Scientific Research and Development (IJTSRD) ISSN: 2456-6470
enhance the making of faster and better decisions present and in which it will operate in the future.
(Pirttimaki and Hannula, 2003). Strategic intelligence is utilized by senior managers
and executives who make and execute overall
In the word of Muller (2005), CI emerged in South corporate strategy. Its most common applications are
Africa in the mid-1990s and early 2000s owing to its in the development of long term strategic plans,
significance. South African enterprises have been too capital investment plans, political risk assessment,
backward, which has made them vulnerable to research and development planning. The strategic
unforeseen threats (Adidam, Gajre and Kejriwal, intelligence is a tool that helps the strategic
2009). Chinese leaders have also considered management processes in organizations towards the
intelligence as a useful means of helping to overcome planning and decision making, and it also improves
its relative isolation from other economic and global the business performance through increasing
trading systems (Chao, 1998; Tao and Prescott, 2000). knowledge and the internal and external
Competitive intelligence in China is still relatively communications (Gabber, 2007). It is evaluated with
embryonic and patchy. Literature reveals that some the factors such as the strategic vision, human and
countries including France, Japan, Sweden and the social resources, and the economical and political
United State of America are more advanced in terms issues of the organizations (Gabber, 2007). The
of the level in which organizations adopt and use CI. strategic intelligence relies heavily on the strategic
In these countries, competitive intelligence has earned planning system and strategic decision making of the
its rightful place as an acknowledged business organizations; it is seen as a concept which is widely
discipline and has become a major source to achieve related to the organization intelligence, organization
competitive advantage. strategies, strategic resources of organization, and
strategic management (Richard, 2007). .
Competitive intelligence is the systematic and
continuous monitoring, collection, analysis and The banking sector is one of the fastest developing
sharing of internal and external business information industries. Financial institutions produce millions of
(Hirvensalo, 2004; Global Intelligence Alliance 2005; transactions daily stored in complex Information
Knip and Fleisher, 2005). Also, the Strategic and Systems. Efficient analysis of such large volumes of
Competitive Intelligence Professionals (SCIP) data is crucial for quick and real time decision-
organization, as cited in Sharp (2009), defines CI as a making. Contemporary corporate enterprises are
necessary, ethical business discipline for decision- always under stress to effectively and efficiently
making based on understanding of the competitive utilize information in order to solve complicated
environment. It is a management discipline that management problems. Turban et al (2011) and
enables executives to make smarter, more successful Petrini and Pozzebon (2003) are of the opinion that
decisions, thereby, minimizing risk, and avoiding managing information in different enterprises is a
surprises simultaneously. major obstacle that demands decision-making
processes focused on trusworthy, valuable and timely
Business organizations need strategic intelligence to data. In view of this, (Argote and Ingarm 2000;
improve and maintain their current status in a Heinrich and Lim 2008; and Karim 2011) admit that
dynamic environment, especially in this critical period knowledge translated into intelligence is the main
of economic recession and political quagmire. source of competitive advantage. Based on the
Strategic intelligence is a term used in the context of foregoing, this paper sets out to examine the influence
strategic planning and strategic management. It aims of competitive intelligence on organizational
to understand where an organization is going, how it performance as its main focus.
can retain its competitiveness in view of future
challenges and changes in the long run (Thierauf, 1.2 Statement of the Problem
2001) and how it can make the best strategic decisions
for maximizing its success (Liebowitz, 2006). Business environments are dynamic and for
Strategic intelligence addresses the intelligence needs organizations to survive the dynamic nature of the
of high-level strategic decision makers, and the focus environment, potential threats and opportunities in the
is primarily on proactive activities. It provides higher external environment must be identified through
level intelligence on the competitive, economic and strategic intelligence efforts. Strategic intelligence is a
political environment in which your firms operate at requirement for the survival of the Nigerian Banking

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International Journal of Trend in Scientific Research and Development (IJTSRD) ISSN: 2456-6470
Industry characterized by intense competition. Many geographical scope of this work is South-East
organizations including the service industry are consisting of Enugu, Anambra, Imo, Ebonyi and Abia
struggling to meet the tough and new competitive State. The justification for the choice of the
standards in speed, quality, efficiency and increased geographical area is paucity of study on strategic
market share in order to become more competitive intelligence and business success on banks in that
and flexible to meet customers’ desired standard. This area. The ten commercial banks selected for this
is because customers’ needs, choices, preferences and research include Zenith Bank, Diamond Bank,
awareness have also changed rapidly. But, the Guarantee Trust Bank, First Bank Plc, Access Bank,
changes in the external environment of business have First City Monument Bank, Fidelity Bank, United
made some banks victims to their competitors, with Bank for Africa, Stanbic Bank Plc and Sterling Bank.
some of them being forced to retrench their staff or
reduce their number of branches as a way of coping 2.1 Conceptual Review
with the intense competition. The invisibility of Meaning of Strategic Intelligence
intelligence units in these banks is a major challenge Strategic intelligence is a combination of different
confronting the banking industry. types of intelligence such as commercial intelligence
and competitive intelligence as well as the issues of
But, without a proper intelligence structure in knowledge management for creation of the added
organizations, it is difficult to respond proactively to value of information and knowledge for
the changes in the competitive environment thereby organizational strategic decision-making (Tarokh &
creating room for faulty information to be generated Hatami Lankarani 2010). This implies that for an
which will mar effective and efficient decision- organization to accomplish Its goals, combination of
making process of the organization. This is because ideas, visions and foresight become very essential.
organizations rely more on information and
knowledge since sustained growth and competitive Strategic intelligence is a system that consists of
authority are derived from knowledge. several dimensions that are essential to create clearer
image about the future; these dimensions can be
1.3 Objectives of the Study summarized as per (Maccoby, 2011) by the following
dimensions, (Foresight,Visioning Motivation).
The broad objective of this study is to examine the Strategic Intelligence is the gathering, analysis, and
nature of relationship between competitive dissemination of data relevant to strategic decision
intelligence and organizational performance in making, (Fleisher and Bensoussan, 2007).
selected commercial banks in South-East, Nigeria..
The specific objective is: Strategic intelligence is a system that consists of
I. To determine the nature of the relationship several dimensions that are essential to create clearer
between strategic intelligence and business image about the future; these dimensions can be
success in selected commercial banks in South summarized as per(Maccoby, 2011) by the following
East, Nigeria. dimensions, (Foresight,Visioning,
Research Question Motivation)..Strategic intelligence is the specific form
i. What is the nature of the relationship between of analysis which is required for the formulation of
strategic intelligence and business success in policy and plans at agency, corporate, national or
selected commercial banks in South-East, international levels.
Nigeria?
Hypothesis 2.2 Theoretical Framework
Strategic intelligence has a significant relationship This research is anchored on Dynamic Capability
with business success in commercial banks in south Theory initially developed by David Teece and Gary
east, Nigeria. Pisano (1994). The theory was introduced to explain
firm performance in a dynamic environment, hinging
1.4 Scope of the Study on the capabilities that firms utilized to reach
This study dwells on competitive intelligence and competitive advantage (Beske, Land, and Seuring,
organizational performance in selected commercial 2014). The theory stipulates that competitive
banks in south-East, Nigeria. The work focused on advantage is attributed to those organizations that can
strategic intelligence and business success.. The react proactively to changes in the business

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International Journal of Trend in Scientific Research and Development (IJTSRD) ISSN: 2456-6470
environment while simultaneously possessing the Five success factors can be defined as an item related
capacity to manage firm specific capabilities in such a to CI process: management support and
way as to effectively and efficiently coordinate and understanding, focus and CI effort, location of CI
redeploy internal and external competencies (Teece et function, CI personal, and product. The paper
al, 1997). Dynamic capability is perceived as the provides executive decision makers and strategic
ability to achieve competitive advantage by being managers a better understanding of what CI process
strategic and flexible, dealing with the changes in the and appropriate to the decisions they must to develop
business environment through competitive a functional intelligence program for an organization.
intelligence efforts (Gizawi, 2014). Capabilities
represent the key of strategic management in Cartwright et al. (1995) surveyed seventy-four
appropriately integrating, adapting and reconfiguring companies, which are members of the SCIP (Strategic
internal and external organizational resources, skills and Competitive Intelligence Professionals). The
and competencies to match the requirements of a study examined whether a relationship exists between
changing environment (Teece et al 1997). Since perceived competitive intelligence usefulness in
strategic intelligence aids decision-making by strategic decision making and strategic orientation of
providing relevant, timely and reliable competitive the firms and specific characteristics of competitive
knowledge and information, dynamic capability intelligence. The study found that technical adequacy
enables firms to react positively to the changes in the (quality) and interaction with the competitive
competitive arena. This theory has lent credence to intelligence unit are the major characteristics
the RBV propositions by advocating flexibility which influencing the perceived usefulness of competitive
leads to achieving competitive advantage in a intelligence. Project-based competitive intelligence
dynamic environmental context. tends to be perceived useful regardless of strategic
2.3 Empirical Review orientation of the firm. However, continuous
competitive intelligence, both comprehensive and
Mohmood Hemmatfar, Mahdi Salehi and Marziyeh focus, was perceived differently by firms based on
Bayat (2010) sought to determine Competitive their strategic orientation. Prospectors and analyzers
Advantages and Strategic Information Systems. The perceived these comprehensive types of competitive
study stressed that knowledge management is a major intelligence as more useful than did defenders and
factor in a competitive environment. This is because reactors.
information system has a vital role in business
operation and financial and non-financial aspect, such Hasan Ali Al-Zu’bi (2016) examined aspects of
as decision-making. Cost leadership, differentiation strategic intelligence and its role in achieving
and innovation are perceived as key indicators organizational agility: An empirical investigation. The
towards achieving a competitive advantage. It was study aimed to identify the strategic intelligence
found that strategic information system helps an dimensions (Visioning, Foresight, Partnership,
organization to gain a competitive advantage through Intuition, and Creativity) on achieving organizational
its contribution to the strategic goals of an agility in the Mining and Extraction Industries sector
organization and/or its ability to significantly increase in Jordan. A study tool was developed (a
performance and productivity. questionnaire) for the purposes of collecting the
Wadie Nasri and Mohamed Zarai (2013) identified primary data from the study population which
Key Success Factors for Developing Competitive consisted of (15) companies, with a total number of
Intelligence in Organization. The purpose of this employees amounting to (8377) A total of (337) was
paper is twofold. First, to understand Competitive chosen as a simple random representative sample of
Intelligence (CI) and report the process that is employees. The study revealed that all the strategic
commonly used to create and maintain a CI program intelligence dimensions had an impact in achieving
in organizations. And second, to provide key success organizational agility, but the influence was more on
factors in developing a functional intelligence dimensional creativity. The researcher recommended
program for an organization. The investigators present that Managers need to better understand how to
a review of the literature on CI process to collect and evaluate, identify organizational agility in order
analyze competitive information within organizations achieve its set goals.
in order to identify key success factors in developing
a functional intelligence program for an organization.

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International Journal of Trend in Scientific Research and Development (IJTSRD) ISSN: 2456-6470
Wadie Nasri (2012) sought to investigate the strategic planning but also it studies the effect of the
conceptual model of strategic benefits of competitive strategic intelligence on the strategic decision making
intelligence process. The purpose of this study is to and strategic planning in organization and companies
explore theoretically how competitive intelligence using the intelligence system in the Khorram-abad
process influence strategic benefits expansion in city. An analytical-survey research was employed.
organization and also to explain the process that is The statistical population for the research is the
commonly used to create and maintain a competitive companies and organizations using intelligent systems
intelligence system in organizations. A review of in Khorram-abad which were estimated using
literature on competitive intelligence within Cochran formula of the random sampling-
organizations is reviewed to explore their current stratification method with a sample size of 150. The
state, tools to collect, analyze, and communicate research tool adopted was questionnaire which was
competitive information and the strategic benefits of confirmed through content validity method and its
the competitive intelligence process. The finding stability by Cronbach’s Alpha. The structural equation
revealed that organizations tend to focus on approach and the AMOS 18 software were utilized to
developing competitive intelligence processes which test the hypothesis. The result shows that the strategic
provide the organization with sustainable competitive intelligence has a positive and meaningful effect on
advantage. In conclusion, the rapidly changing the strategic decision making and strategic planning in
business environment, the need for timely information the companies and organizations using the intelligent
is recognized as essential for organizations to succeed systems in Khorram-abad. In addition, the effective
and survive in a competitive environment. factors on the strategic intelligence, human resource
intelligence, organizational process, technological,
Carolina Schiefer (2013) researched on the role of informational, financial resources, competitor, and
competitive intelligence in strategic purchasing customer intelligence were recognized.
decisions and its influence on suppliers’ resource
allocation. The main thrust of the paper hooks on Badr., Madden, & Wright, (2006) examined
analyzing how competitor intelligence in strategic Contribution of CI to the Strategic Decision Making
purchasing decisions affects the suppliers’ resource Process: Empirical Study of the European
allocation and leads to a competitive advantage. Pharmaceutical Industry. The main aim of the study
Based on an exploratory multiple-case study with ten was to investigate the practices of competitive
Global Players, insights into strategic purchasing intelligence (CI) managers in the European
decisions and the consideration of competitor pharmaceutical industry, specifically in relation to the
intelligence were gathered. Thus, this paper sets the contribution which CI made to the strategic decision
first step towards theory building with respect to the making (SDM) process, regardless of firm size. CI
use and effect of competitor intelligence in strategic managers in the European pharmaceutical industry
purchasing. It was found that competitor intelligence were selected and the results from 79 copies of
is imperative for strategic purchasing decisions and questionnaire and 14 in-depth interviews were
positively affects the decision’s outcome. provided. Results indicated that the CI activities in
Surprisingly, most of the companies perceive respondent firms are reasonably well established and
competitors sharing the same supplier to be a threat also that the pharmaceutical industry appears to
and an opportunity at the same time. Results indicated appreciate both the benefits, and requirements of a
that while competitor intelligence may slightly affect modern day CI function. Also, the industry is not
the buyer-supplier relationship per se; the assumption taking full advantage of the CI effort at every stage of
that competitor information leads to a better resource the SDM process.
allocation and ultimately positively affects a
company’s competitive advantage is widely accepted Sabah Agha1, Eyad Atwa, Shadi Kiwan (2015)
by the participants. studied the impact of strategic intelligence on firm
performance and the mediator role of strategic
Mahmoud Reza Esmaeil (2014) investigated the effect flexibility: An empirical research in biotechnology
of strategic intelligence on decision making and industry in Jordan, Amman. The main objective of
strategic planning. The present research aims to this paper is to investigate the impact of strategic
recognize not only the effective factors on the intelligence and its dimensions of (foresight,
strategic intelligence, strategic decision making and visioning, and motivation) on firm performance, and

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International Journal of Trend in Scientific Research and Development (IJTSRD) ISSN: 2456-6470
to examine the mediating role of strategic flexibility purpose. They are usually collected from the field
and its dimensions of (production flexibility, under the control and supervision of an investigator.
marketing flexibility and competitive flexibility) on Primary sources include interview, questionnaire and
such an impact in biotechnology industry firms. The observations.
statistical package for social sciences (SPSS) program 3.2.2 Secondary Sources of Data: Are existing data
and AMOS software were used to analyze and that have been collected by other researchers for other
examine the hypotheses. After executing the analysis purposes but which are essential to the current
to test hypotheses; the research concluded that there research. Secondary data also refers to data that is
are significant positive impacts of strategic used for a purpose other than for which it was
intelligence on firm performance, positive impacts of originally generated. It may be descriptive or
strategic intelligence, on strategic flexibility, and explanatory (Saunders, Lewis, & Thornhill 2007), raw
positive impacts of strategic intelligence on firm (unprocessed) or summarized. Secondary data for the
performance in the presence of strategic flexibility as research was collected by reviewing textbooks,
a mediator variable. journals, articles, magazines, publication and relevant
documented materials from the organizations of
3.1 Research Design study.
This study employed survey research design. The
justification for the adoption of Survey is that it 3.3 Population of the Study
anchors on description of a phenomenon and involves The target population of the study comprises both
questioning individuals on topics and then describing junior and senior staff of the ten selected banks in
their responses (Jackson, 2011).It involves gathering South- East Region of Nigeria. The population status
of opinions and information from respondents which is 16,265. These banks include Zenith Bank, Diamond
addresses the research objectives and research Bank, Guarantee Trust Bank, First Bank plc, Access
questions. The dominant methods of the survey Bank, Fidelity Bank, First City Monument Bank,
designs are the administration of copies of United Bank for Africa, Stanbic Bank Plc, and
questionnaire and interviews. Sterling Bank. The first three were rated top Nigerian
Banks by Customer Satisfaction Index Rating in terms
3.2 Sources of Data of customer care, convenience and transaction
Data for this study were generated from both primary methods/systems (KPMG, 2014) while the remaining
and secondary sources. seven banks were selected based on their competitive
nature in the banking industry in Nigeria. The
3.2.1 Primary Sources of Data: Are perceived as statistical information concerning the selected banks
first-hand information generated to solve specific is given below:
problems. They are data collected specifically for a

Table 3.1 Breakdown of the Population Distribution

S/N Selected Banks Junior Senior Total


Staff Staff
1 Zenith Bank 720 850 1570

Diamond Bank 525 920 1445


2
3 Guarantee Trust Bank 580 740 1320
First Bank Ng Plc 840 1000 1840
4
5 Access Bank 525 745 1270
6 Fidelity Bank 600 750 1350
7 First City Monument 960 1050 2010
Bank
8 United Bank for 930 1050 1980
Africa

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International Journal of Trend in Scientific Research and Development (IJTSRD) ISSN: 2456-6470
Stanbic IBCT Bank 740 970 1710
9 PLC
10 Sterling Bank 850 920 1770

Total 7270 8995 16,265


Source: Human Resource Department (2015).

3.4 Pilot Survey n =Z2pq


A pilot survey was conducted in which one hundred
(100) copies of the questionnaire were randomly e2
distributed to some staff of the selected banks in
Where:
South-East Nigeria. The pilot survey was used to
determine the sample size. Ninety(90) out of the n = sample size
hundred(100) respondents returned representing 0.90
positive rating while only ten(10) defaulted p = percentage of positive response
representing (0.10) negative response.
q = percentage of negative response
3.5 Sample Size Determination and Sampling
Technique e = margin of error
Sampling represents the process of selecting a subset Z = level of confidence
of observations from among many possible
observations. It ensures that all the elements of the To generate the p and q values for the simple size
population under study are fully represented. The formula, the result of our pilot study was employed.
accuracy of statistical inference relies heavily on the
accuracy of sample and sampling technique. The 90 = 0.90. p = 0.90
Stratified Random Sampling was adopted in this
10 = 0.10. q = 0.10
study. The method was used because of the nature of
the population. This research certified Cooper and At e = 0.05 (margin of error), Z = 1.96. Thus, we have
Schinder (2006) criteria for adopting stratified random
sampling technique which include: increased sample’s ɳ = (1.960)2 (0.90) (0.10)
statistical efficiency and adequacy of data for
analyzing the various sub-population or strata. In (0.025)2
addition, it was also utilized in this study to ensure ɳ = 553
that banks with different numerical strengths are well
represented. The Freund and Williams’s formula as ɳ = 553
cited by Agbadudu (2004) was adopted to determine
the sample size for the study. The formula is given
below:
Table 3.2 below shows the proportional stratification and allocation of the sample 553 to senior and
junior staff of the selected banks.

S/N Selected Junior Senior Sample


Banks Staff Staff size
Zenith Bank 553x720/16,265=24 553x850/16,265=29 53
1 NigPlc
2 Diamond Bank plc 553 x525/16,265=24 553x920/16,265=31 55

3 Guarantee Trust 553x580/16,265=20 553x740/16,265=25 45


Bank
4 First Bank plc 553x840/16265=29 553x1000/16,265=34 63

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International Journal of Trend in Scientific Research and Development (IJTSRD) ISSN: 2456-6470
5 Access Bank 553x525/16265=18 553x745/16,265=25 43

6 Fidelity 553x600/16,265=22 553x750/16,265=25 47


7 First City 553x960/16,265=34 553x1050/16265=37 71
Monument Bank

8 United Bank for 553x760/16265=25 553x890/16265=30 55


Africa
9 Stanbic Bank 553x740/16265=26 553x970/16265=33
IBCT 59
10 Sterling Bank 553x920/16265=31 60
553x850/16265=29
Total 553
Source: Human Resource Department, 2015

A total number of 553 respondents were used for this customer, market and product) and the organizational
study as the sample size. After the sample size was performance construct was decomposed into six
calculated, the values were allocated proportionately (market share, business success, innovation, quality
to the ten (10) deposit money banks hinging on the service delivery, productivity and customer
proportion of the population of each bank. . satisfaction).

3.6 Description of the Research Instrument Oral interview was conducted to generate more
information from the respondents of the banks. The
Research instrument refers to the various tools for interview helped the researcher to gather some
primary data collection. Saunders, Lewis and relevant facts and information that could not be
Thornhill (2007) list questionnaire, interviews (semi- gathered through questionnaire.
structured, in-depth and group) and observation as
methods that are applicable. But, for the purpose of 3.7. Validity of the Instrument
this study, the key instruments that were adopted are
structured questionnaire and oral interview aimed at To test the validity of the instrument, construct and
eliciting detailed and factual information. The content validity were conducted by the researcher.
questionnaire method is very essential because it The validity of the instrument for measurement
provides an efficient way of gathering responses from according to Asika (2006) refers to the extent or
a large population. In the words of Ezejelue, Ogwo degree to which the instrument measures what it is
and Nkamnebe, (2008), it is the most popular method purported to measure. To ensure that the instrument
of data collection.The questionnaire was structured to for this study effectively measure what it was
place the respondents on objective response for each designed for, the items of the questionnaire were
statement on five-point Likert scale. The response given to panel of experts in the discipline and
scoring rates are: 5 for strongly agree (SA), 4 for organizations of study for thorough scrutinizing with
Agree (A), 3 for undecided (U), 2 for Disagree (D), the intention of ensuring that all relevant variables of
and 1 for strongly Disagree (SD). The questionnaire the study are captured in the copies of questionnaire.
which was tagged’ Competitive Intelligence and The variables are the objectives, research questions
Organizational Performance were categorized into and the hypotheses of the study which were properly
three sections. Section A carried a covering letter, well-structured in conjunction with the reviewed
section B focused on questions on the respondents’ literature. The purpose is to ensure that the content
demographic characteristics (bio-data), and section C validity of the research instrument is assured.
contained questions on competitive intelligence
3.8. Reliability of the Study
proxies and organizational performance indices. The
administration of the questionnaire cut across the ten Reliability refers to the consistency of the measuring
banks chosen for this study. The competitive instrument overtime. Pallant (2008) states that a
intelligence construct was measured on six Cronbach alpha of 0.70 or above is generally
dimensions (competitor, strategic, technology, recommended or considered appropriate for studies in

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International Journal of Trend in Scientific Research and Development (IJTSRD) ISSN: 2456-6470
Social Science Research. Responses on a summated statistical tools utilized are Pearson Product Moment
scale showed consistency across questions, which Correlation using SPSS Version 20 and Simple
indicated that the questions are measuring the same Regression Analysis. Correlation Analysis showcases
thing (internal consistency) (Spector, 1992).Cronbach the interdependence of the study variables. Statistical
Alpha was used to measure the internal consistency. correlation is significant if coefficient is more than
A reliability coefficient demonstrates whether the test 0.5. Moreover, if P-value is low (under 0.01), it
designer was correct in expecting a certain collection implies that the correlation actually exists.
of items to yield interpretable statements about
individual differences (Kelley, 1942). The reliability 3. 10 Decision Rule: In order to test the one
coefficient for the scales are: strategic intelligence formulated hypothesis, the study employed the
(.711); business success (821) ; All scales showed Pearson Product Moment Correlation Coefficient
values which are greater than .70, a threshold [PPMCC] computed with the aid of Statistical
considered suitable for most studies (Hair, Black, Package for Social Sciences (SPSS) Version 20 and
Babin, Anderson, & Tatham, 2006). Simple Linear Regression Analysis.

3.9 Method of Data Analyses The decision rule is stated as follows:


If P < .01, we reject the null and accept the alternate;
To analyze the data for this research work, both or,
descriptive and inferential statistical tools were If P > .01, we reject the alternate and accept the null.
adopted to lend credence to this work. The descriptive
statistical tools that were employed include mean,
percentages and standard deviation. The inferential
Table 4.1 Distribution and Return of the Questionnaire
Firms No % No % No not %
Distributed Returned Returned
Zenith Bank Nig Plc 53 9.6 46 8. 7 1.3
Diamond Bank Plc 55 9.9 50 9 5 0.9
Guarantee Trust Bank Plc 45 8.1 42 8 3 0.5
First Bank Plc 63 11.4 56 10 7 1.3
Access Bank Plc 43 7.8 40 7 3 0.5
Fidelity Bank plc 47 8.5 43 8 4 0.7
First City Monument Bank 71 12.8 64 12 7 1.3
United Bank for Africa Plc 55 9.9 50 9 5 0.9
Stanbic Bank IBCT Plc 59 10.7 54 10 5 0.9
Sterling Bank Plc 60 10.8 57 10 3 0.5
Total 553 100 502 91 51 9
Source: Field Survey 2016
Table 4.1 shows that 502 (91%) of the copies of the questionnaire distributed were returned while 51 (9%) were
not returned and was not used.

4.2 To determine the nature of the relationship between strategic intelligence and business success in
commercial banks in South-East, Nigeria.
S/No Statement SA A N D SD Total
% % % % %
7 There is a significant relationship between strategic 386 89 14 11 2 502

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International Journal of Trend in Scientific Research and Development (IJTSRD) ISSN: 2456-6470
intelligence and business success 76.9% 17.7% 2.8% 2.2% 0.4%
8 There is a negative relationship between strategic 40 78 58 178 148 502
intelligence and business success 7.10% 15.5% 11.6% 35.5% 29.5%
9 Our ability to think strategically has really enhanced 460 37 1 2 2 502
the competitive status of our bank 91.6% 7.4% 0.2% 0.4% 0.4%
10 The relationship between strategic intelligence and 211 107 45 129 10 502
business success is not obvious 42.0% 21.3% 9.0% 25.7% 1.10%
11 We survive through meeting the needs, wants and 389 98 5 4 6 502
providing benefits for customers 77.5% 19.5% 1.0% 0.8% 1.2%
12 There is no relationship between strategic 83 86 40 197 96 502
intelligence and business success 16.5% 17.1% 7.10% 39.2% 19.1%
Source: Field Survey (2016)

Item 7 of table 4.2 Indicates that 386(76.9%) of the In item 12 of the table 4.2, 83(16.5%) of the
respondents strongly agreed with the Statement that respondents strongly agreed that there is no
there is a significant relationship between strategic relationship between strategic intelligence and
intelligence and business success. 89(17.7%) agreed, business success, 86 (17.1%) agreed, 40(7.10%) were
14(2.8%) were undecided, 11(2.2%) disagreed while undecided, 197(39.2%) disagreed while 96(19.16%)
2(0.4%) strongly disagreed that there is a significant strongly disagreed that there is no relationship
relationship between strategic intelligence and between strategic intelligence and business success.
business success.
Test of Hypothesis
Item 8 of the table 4.2 states that there is a negative
relationship between strategic intelligence and Ho: Strategic intelligence has no significant
business success. 40(7.10%) strongly agreed with the relationship with business success in deposit money
statement, 89(17.7%) agreed, 58(11.6%) were banks in South East Nigeria
undecided, 178(35.5%) disagreed while 148 (29.5%) H1: Strategic intelligence has a significant
strongly disagreed that there is a negative relationship relationship with business success in deposit money
between strategic intelligence and business success. banks in South East Nigeria
In item 9 of the table 4.3, 460(91.6%) of the
respondents strongly agreed that our ability to think Table 4.11 Descriptive Statistics
strategically has really enhanced the competitive Mean Std. N
status of our bank, 37(7.4%) agreed, 1(0.2%) were Deviation
undecided, 2(0.4%) disagreed while 2(0.2%) strongly strategic 1.4183 .72886 502
disagreed that our ability to think strategically has intelligence
really enhanced the competitive status of our bank. business success 1.6195 .67509 502
Source: SPSS Version, 20.00
In item 10 of the table 4.2, 211(42.0%) of the
respondents strongly agreed that the relationship Table 4.12 Correlations
between strategic intelligence and business success is strategic business
not obvious, 107 (21.3%) agreed, 45(9.0%) were
intelligence success
undecided, 129(25.7%) disagreed while 10(1.10%)
strategic Pearson 1 .774**
strongly disagreed that the relationship between
intelligence Correlation
strategic intelligence and business success is not
Sig. (2- .000
obvious.
tailed)
In item 11 of the table 4.2, 389(77.5%) of the N 502 502
respondents strongly agreed that we survive through business Pearson .774** 1
meeting the needs, wants and providing benefits for success Correlation
customers, 98 (19.5%) agreed, 5(1.0%) were Sig. (2- .000
undecided, 4(0.8%) disagreed while 6(1.2%) strongly tailed)
disagreed that we survive through meeting the needs, N 502 502
wants and providing benefits for customers. **. Correlation is significant at the 0.01 level (2-tailed).

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International Journal of Trend in Scientific Research and Development (IJTSRD) ISSN: 2456-6470
Source: SPSS Version, 20.00 that pave way for organizational success. It provides
higher level intelligence on the competitive, economic
Table (4.12) shows the descriptive statistics of the and political environment in which your firms operate
strategic intelligence and business success with a at present and in which it will operate in the future.
mean response of 1.4183 and std. deviation of .72886 The ability of a firm to master information and
for strategic intelligence and a mean response of knowledge constitutes an essential factor in business
1.6195 and std. deviation of .67509 for business success (Lapointe,1995; Porter, 1990).Business
success and number of respondents (502). By careful success is measured in terms of market share, profits
observation of standard deviation values, there is not and return on investment. Information and the ability
much difference in terms of the standard deviation to exploit intelligence information are the means by
scores. This implies that there is about the same which business are able to identify new opportunities
variability of data points between the dependent and and acquire new knowledge. This helps them quickly
independent variables. get on the same page with regard to competitive
understanding and move more quickly toward
Table (4.12) is the Pearson correlation coefficient for devising strategies and plans to maximize competitive
strategic intelligence and business success. The advantage (Wright & Calof, 2006). Strategic
correlation coefficient shows 0.774. This value Intelligence helps organizations to forecast future
indicates that correlation is significant at 0.05 level trends which pave way for organizations
(2tailed) and implies that there is a significant positive competitiveness in a turbulent and dynamic
relationship between strategic intelligence and environment in which we find ourselves today. This
business success (r = .774). The computed study is also in line with views expressed by Sabah
correlations coefficient is greater than the table value Agha1, Eyad Atwa, Shadi Kiwan (2015) that there are
of r = .195 with 500 degrees of freedom (df. = n-2) significant positive impacts of strategic intelligence
at alpha level for a two-tailed test (r = .774, p< .05). on firm performance, positive impacts of strategic
However, since the computed r = .774, is greater than intelligence, on strategic flexibility, and positive
the table value of .195 we reject the null hypothesis impacts of strategic intelligence on firm performance
and concluded that strategic intelligence has a in the presence of strategic flexibility as a mediator
significant positive relationship on business success (r variable. In another similar study conducted by
=.774, P<.05). Rashad Al Saed (2013), the result indicates that there
is a positive relationship between the business
Result and Discussion of finding intelligence and business success. This depicts that the
The researcher found out that ‘Strategic intelligence success of any business relies heavily on its ability to
has a significant positive relationship with business make forecast,that is, being able to predict present and
success in deposit money banks in South-East, future trends.
Nigeria. This finding is in tandem with a similar study
conducted by Mohmood Hemmatfar,Mahdi Salehi Conclusion and Recommendation
and Marziyeh Bayat (2010) which state that strategic
The result of the analysis conducted revealed that
information system helps an organization to gain a
Strategic intelligence has a significant positive
competitive advantage through its contribution to the
relationship with business success. This implies that
strategic goals of an organization and/or its ability to
survival of banks depends on its proactive and
significantly increase performance. Strategic
reactive nature in sync with the happenings in the
intelligence aims to understand where an organization
competitive environment. Banks should also be
is going, how it can retain its competitiveness in view
flexible enough to adapt to the changes accruing from
of future challenges and changes in the long run
the external business environment.
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